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taxes on profits on stock market and subletting

  • 29-06-2020 9:26pm
    #1
    Registered Users Posts: 26 ✭✭✭ ning sudnaen


    In 2019 I made about 5000 profit when i sold some shares and etf's because I am very clever. In 2020 because I am stupid I believed there was a possibility that Boris would die hence I panicked and sold a large amount of shares which I made a loss of 4000 on ......is there anyway I can offset my loss so as to reduce my liability on the 5000 profit or against my profits on property rentals.
    Second question in one of my properties the tenant has been subletting. Now the law says he should ask my permission but he did not, but there is not a lot i can do. However the law also states he should declare the income he receives from subletting to revenue ie and pay tax on said income which I suspect he has not done.... Would if informed of this tax avoidance the revenue take any action


Comments

  • Registered Users Posts: 4,549 ✭✭✭ cython


    Per https://www.revenue.ie/en/gains-gifts-and-inheritance/transfering-an-asset/selling-or-disposing-of-shares.aspx you can carry forward losses to offset against future gains, but I'm pretty sure you can't (effectively) claim a refund on a previous gain due to a subsequent loss,which is what you're basically asking.

    Capital losses also can't be used to offset tax from regular income. So really all you can do for now (AFAIK) is to "bank" your loss and sit on it until such a time as you make a gain in future and can use the previous loss as credit against the tax due then.


  • Registered Users Posts: 345 ✭✭ thegolfer


    FIrstly this:

    In 2019 I made about 5000 profit when i sold some shares and etf's because I am very clever. In 2020 because I am stupid I believed there was a possibility that Boris would die hence I panicked and sold a large amount of shares which I made a loss of 4000 on ......is there anyway I can offset my loss so as to reduce my liability on the 5000 profit or against my profits on property rentals.

    You cannot carry a loss back to 2019 from 2020. Also, this is CGT and thus cannot be offset to income tax, being different tax heads.

    Secondly:
    The second question, in one of my properties the tenant has been subletting. Now the law says he should ask my permission but he did not, but there is not a lot i can do. However, the law also states he should declare the income he receives from subletting to revenue ie and pay tax on said income which I suspect he has not done.... Would if informed of this tax avoidance the revenue take any action.

    This sublet is it your tenants' principal private residence? If so he can claim rent a room relief up to €14,000 annually.

    If it is a commercial unit, then it reduces their rental expense to you and they pay extra tax on the profits.


  • Registered Users Posts: 26 ✭✭✭ ning sudnaen


    on the rent a room i would imagine that to make it a legal rent a room he would have to declare the income on his tax return even though it is not taxable. Also to make it a legal rent a room he would need my permission...So therefore it is a non legal rent a room and as such would not qualify as a tax free income
    Also I believe on one of his sub lets he was out of the country for a few months I suspect this would make it fail on rent a room because he would have to be resident apart from short holidays ....less than a month??


  • Registered Users Posts: 26 ✭✭✭ ning sudnaen


    i would imagine a non legal ie no permission from LL no declaration of the income (non taxable) on his return would cause him to be rejected for the 14000 tax relief


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